For the Quarter Ending December 2023
In the final quarter of 2023, the North American Sorbitan Monostearate market experienced price fluctuations due to a notable decrease in overall demand. This decline resulted in reduced market prices across downstream industries throughout Q4 2023. The market for the raw material Sorbitol and upstream corn also saw a significant decline without substantial cost support, impacting the Sorbitan Monostearate market accordingly.
Downstream trading entities exercised caution, and manufacturers adjusted purchase prices gradually after completing acquisition tasks. North America, being a major importer, aligned its trajectory with exporting nations to maintain competitiveness. Despite a robust domestic harvest increasing Sorbitan Monostearate stocks, the market faced oversupply, continuing to push prices down.
The decrease in American corn exports was tied to reduced purchases, further contributing to the decline in Sorbitan Monostearate prices. Weakened import prospects and declining international market demand added pressure on existing inventories, leading to overall fragility and consolidation of the domestic market. The negative market outlook was compounded by the year-end destocking phenomenon, where buyers globally actively destocked their inventories at lower costs, exerting downward pressure on prices before year-end inventory adjustments.
In the fourth quarter of 2023 (October to December) within the APAC region, the Sorbitan Monostearate market witnessed several influencing factors impacting prices. Notably, the market experienced limited advancement, characterized by minimal growth. This stagnation can be attributed to weakened demand in downstream industries and diminished export prospects, resulting in increased pressure on existing inventories. Furthermore, a surplus of stockpiling by domestic manufacturers and local suppliers contributed to a reduction in prices. Compounding the negative market outlook was the year-end destocking phenomenon. Prior to year-end inventory adjustments, buyers globally were actively destocking their inventories at lower costs, exerting downward pressure on prices. However, as actual demand fell short, the excess inventory required clearing, consequently leading to a price reduction in the Indian market during this period. The market volume of raw material Sorbitol remained sufficient, and feedstock corn prices exhibited a gradual increase, establishing a connection between the domestic corn market and both new and old markets. Overall, the market grappled with instability and stagnant demand, prompting a cautious approach from traders and manufacturers due to persistently low demand from end-user industries. Nevertheless, there is a forecast that prices will rebound in the upcoming months as demand improves and market players restock their inventories. Regarding price trends, the current quarter's price of Sorbitan Monostearate (SPAN-60) Ex-Nagpur in India was recorded at USD 2170/MT, reflecting an average quarterly decline of 5.45%.
In the last quarter of 2023, the European Sorbitan Monostearate market experienced price fluctuations, mainly due to a significant decrease in overall demand for the product during this period. This decline in demand resulted in a subsequent reduction in market prices. The diminished demand for Sorbitan Monostearate persisted across various industries throughout Q4 2023. Additionally, the market for the raw material Sorbitol also saw a notable decline, lacking substantial cost support. As a result, the Sorbitan Monostearate market mirrored this downward trend. Entities involved in trading downstream exercised caution, and manufacturers gradually adjusted purchase prices after completing acquisition tasks. Given Europe's role as a major importer, the region aligned its trajectory with exporting nations to maintain competitiveness in the market. Furthermore, weakened import prospects and declining international market demand added pressure on existing inventories, contributing to an overall fragility and consolidation of the domestic market. Compounding the negative market outlook was the year-end destocking phenomenon. Prior to year-end inventory adjustments, buyers globally were actively reducing their inventories at lower costs, placing downward pressure on prices.
For the Quarter Ending September 2023
Throughout the third quarter of 2023, Sorbitan Monostearate prices in North America showed a consistent pattern of fluctuations. This decline in prices, especially in the United States, was primarily due to increased Sorbitan Monostearate availability resulting from ongoing harvests in major exporting countries in the northern hemisphere. Challenges faced by U.S. corn crops, including hot and dry conditions, particularly in the northern regions where crops were still growing, significantly contributed to this price drop. A severe drought in the western part of the United States in late April forced many farmers to abandon their crops. However, Sorbitan Monostearate prices substantially decreased from their peak in late June during July. This drop can be attributed to the start of the harvesting season, aided by July rains, which played a crucial role in crop development, counteracting the earlier dry conditions and hot summer temperatures. Furthermore, a significant harvest in Brazil added to the factors influencing this price decline. Brazil was on track to surpass the United States as the world's leading corn exporter, resulting in an excess supply of Sorbitan Monostearate from Brazil that reduced demand for U.S. corn exports, further contributing to the price drop. Despite a robust domestic harvest that increased Sorbitan Monostearate stocks, the market experienced an oversupply, which continued to push prices down. Additionally, the decrease in American corn exports was tied to reduced purchases, further contributing to the decline in Sorbitan Monostearate prices during this period.
In Q3 2023, Sorbitan Monostearate (SPAN-60) prices in the APAC region experienced consistent fluctuations. Prices for Sorbitan Monostearate in Nagpur went from $2498.43 per metric ton in July to $2572.09 per metric ton in September, resulting in an average quarterly increase of 1.40%. The drop in July was due to pressure from raw material sorbitol and the corn market, leading to minor reductions in factory prices and a subsequent slight decrease in domestic market prices for Sorbitan Monostearate in certain areas. However, stability returned by the end of the month as corn prices leveled off. Toward the end of the quarter, sporadic corn entries in the northeast production area and optimistic expectations for a high yield of new-season corn continued to push down domestic corn market prices. This, in turn, had a negative impact on domestic Sorbitan Monostearate market prices due to ample inventories and sluggish demand. Nevertheless, prices rebounded in the middle of the third quarter, driven by the persistent strength of the domestic corn market, fluctuating but eventually stabilizing raw material costs, and increased demand for starch after the summer season. These factors, supported by cost considerations and rising demand, contributed to the sustained strength of the domestic Sorbitan Monostearate market. By the midpoint of the year, domestic corn market prices saw a slight increase, raw material costs fluctuated but eventually stabilized, and Sorbitan Monostearate market prices achieved stability.
In the third quarter of 2023, there were significant price fluctuations observed for Sorbitan Monostearate in the European market. The most notable drop in prices occurred in July, which had a detrimental impact on consumption in both the food and industrial sectors. This situation was aggravated by a recent rise in inflation, leading to increased production and transportation expenses for corn, further contributing to the downward pressure on Sorbitan Monostearate prices. Additionally, local traders with substantial corn reserves exacerbated the situation by lowering their price quotations as a strategic move to offset potential losses, thus intensifying the market's downward pressure. The prevailing conditions in the corn market, characterized by low production costs and abundant domestic inventories, played a significant role in influencing the direction of Sorbitan Monostearate prices. The surplus supply of corn had a downward effect on prices in both Germany and Belgium, which are two major corn-exporting nations.